CPI Inflation

The monthly CPI indicator suggested that the annual rate of consumer price inflation ebbed 0.1ppts to 2.4% YoY in February, against market expectations of no change. Annual trimmed mean inflation, which is the RBA’s favoured measure of underlying inflation, declined 0.1ppts to 2.7%, which is very close to the mid-point of RBA target range of 2-3%.

The monthly CPI indicator suggested that the annual rate of CPI inflation remained at 2.5% YoY in January, against the market expectations of a 0.1ppts increase to 2.6%. Annual trimmed mean inflation, which is the RBA’s favoured underlying price growth gauge, also picked up 0.1ppts to 2.8%.

The headline CPI (unadjusted) rose 0.2% in Q4 2024, taking the annual inflation rate 0.4ppts lower to 2.4% (mkt exp. 0.3% QoQ and 2.5% YoY).

The monthly CPI indicator suggested that annual inflation picked up to 2.3% in November after being steady at 2.1% in the previous two months, the lowest level since July 2021. The consensus market expectation was for an increase to 2.2%. Of the core measures, the CPI excluding volatile items and holiday travel rose 0.6% in the month, with annual growth rising 0.4ppts to 2.8%.

The monthly CPI indicator suggested that annual inflation was steady at 2.1% in October, which is the lowest level since July 2021. The headline rate of inflation is being held down below the mid-point of the RBA target range by the impact of household electricity bill relief measures that are being rolled out by Commonwealth and state governments.

The headline CPI (unadjusted) rose 0.2% in Q3 2024, taking the annual rate of inflation 1 percentage point lower to 2.8%. The annual rate of headline CPI inflation is back in the RBA target range of 2-3%, for the first time since 2021. However, trimmed mean inflation, which is the RBA’s favourite underlying price gauge, was 0.8% in the quarter and 3.5% through the year.